WASHINGTON—As lawmakers reconvene in Washington, fresh negotiations to end the ongoing federal government shutdown could carry a significant win for credit union industry stakeholders: the possible reversal of the mass reductions in force (RIFs) initiated since Oct. 1 — including the termination of staff at the CDFI Fund.
According to journalist Jake Sherman in a post on X, language in the emerging bill “is set to include language to reverse the mass federal layoffs since October 1.”
That development matters directly for the credit union space. Defense Credit Union Council Chief Advocacy Officer Jason Stverak told CUToday.info that if the deal holds, “we would hope that the CDFI-Fund employees at Treasury would be included (in the RIF reversals). DCUC believes these employees are vital to the continued operation of the CDFI Fund.”
Status Of The Funding Talks
Negotiators appear to have honed in on a compromise that could yield a short-term spending bill continuing resolution through late January, while also pairing in a separate minibus appropriations package for military-construction and veterans-affairs funding.
According to reporting by The Hill, “as many as 10 Democratic senators are expected to vote for a bill to reopen the government as soon as Sunday evening or early Monday morning,” under a plan that “would combine … a continuing resolution to fund the rest of the federal government through Jan. 30.”
Sherman, echoing that sense of momentum, noted via X that the deal being drafted would include both the reopening of the government and “language to reverse mass federal layoffs since October 1.”
What This Means For The CDFI Fund And Credit Unions
The RIFs instituted by Treasury have been deeply disruptive for the CDFI Fund’s operations; the fund’s staff received termination notices in early October, triggering industry alarm.
“Firing every CDFI Fund employee threatens the very communities CDFIs were created to serve,” Stverak told CUToday.info in early October.
If the emerging funding deal includes a rollback of those RIFs, and the reinstatement of CDFI Fund staff, it would mark a major pivot for the credit-union and community development finance sectors — restoring a key federal partner at a time when low-income, rural and veteran-serving credit unions are under heightened pressure.
“Obviously this is just in the initial stages, but if there is an agreement to roll back some of the reductions in force we would hope that that would include the CDFI employees,” Stverak said.
When Could the Shutdown End?
Industry and Hill analysts now view the shutdown as nearing a resolution. Stverak offered a working forecast in a conversation with CUToday.info.
“I think we're at that breaking point where we're going to get a solution,” he said, estimating a resolution may not happen until Wednesday. “The House has to come in and act on it. But, right now, I think end of next week — Friday—is my guess.”